Making Cents: Have you paid your Local Property Tax? Here's what to do

Gráinne McGuinness has a guide to figuring out your LPT liability

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While the deadline for paying the Local Property Tax (LPT) passed earlier this month (on January 12), and property valuations were to have been submitted by last November, there are a significant number of property owners who haven’t fulfilled all their obligations in respect of this tax and Revenue is recommending that they do so immediately.

With days to go ahead of the payment deadline, Revenue published statistics showing a payment compliance rate of over 90% but a lower return compliance rate of just over 80%.

“This means that there is a cohort of property owners who have paid or put payment arrangements in place in respect of their LPT but have yet to file an updated valuation for their property in their LPT Return just yet,” a spokesperson said. 

“This is likely happening for a number of reasons, for example, property owners who ordinarily have paid their LPT by deduction at source (i.e. deduction through their salary or pension) will have their payment method carried forward into 2022 and they may genuinely think that they have fully met their LPT obligations for 2022.

“Similarly, we issued paper forms to some property owners who had not previously engaged with us online, of whom ~15,000 have paid their LPT in full at the Post Office, but haven’t yet sent in their LPT Return and so have not submitted their property valuation to Revenue. 

“Again these property owners likely think they have met their LPT requirements for 2022. We will work with these property owners to get their LPT Returns filed in as soon as possible.” 

So if you have paid or arranged to pay the LPT but haven’t submitted a valuation for your property, it is important to realise that you still need to do so. Revenue’s estimate for your property could be incorrect, leading to a shortfall on which you will pay interest.

“For those who have neither filed their LPT Return nor paid/made arrangements to pay their LPT for 2022, it is important to point out that Revenue has made an estimate of the LPT liability for each property for 2022,” the spokesperson explained. 

Property owners can view the amount of this LPT Notice of Estimate in their online property record for 2022. In this absence of an LPT Return, the estimated LPT liability amount is legally payable by the property owner. 

“This means that Revenue will collect the estimated LPT liability amount and continue to seek submission of the property owner’s LPT Return and confirmation the value of the property.

“However, it’s important to note that payment of the estimated LPT liability amount may not satisfy the property owner’s liability in full – because it is simply an estimate based on average property valuations in the area where the property is. If the estimated LPT liability doesn’t meet the property owner’s liability in full, interest of 8% per annum is charged on the shortfall.”

If you are in this situation, don’t fear the taxman; the Revenue spokesperson was keen to stress that Revenue is very conscious that we are still in the midst of a global pandemic.

“We know that a significant cohort of people have suffered in many ways, including financially,” they said. “Since the onset of the pandemic, Revenue has suspended most of our enforcement activity for other taxes -our approach as regards LPT is no different.

“When the impacts of Covid on society and the economy begins to improve we will review our approach, keeping property owners informed and updated as we go. In the meantime, Revenue is encouraging property owners who have not yet submitted their LPT Return to do so as soon as possible or make contact with Revenue for any support they need.” 

The facility to register your property with Revenue by filing an LPT Return is available and will remain available into the future for property owners who are liable for LPT for both the current and previous valuation periods.

You should have received a letter from Revenue through myAccount, Revenue Online Service (ROS) or the post regarding your LPT obligations for 2022. This letter included your Property ID and PIN. If you are a residential property owner and you have not been contacted Revenue says check your myAccount and ROS inbox. If the letter is not there please contact the LPT Branch by phone at 01 738 3626 or through the online service. 

“Property owners who didn’t meet the deadline for filing their LPT return for the 2022 – 2025 valuation period can still file at any time and Revenue recommends that they do so immediately,” the spokesperson added. 

“Such property owners can still meet their payment obligations for 2022 and pay their LPT on time if they select the annual debit instruction(ADI) payment option when filing their LPT return and ensure that the ADI has been set up correctly with their banking service provider.”

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